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Privatisation of water resources is a big business. In fact, the water sector is a multi billion Ringgit industry. The 2000 National Water Resources Study* indicated that 62 water projects amounting to 51 billion (US 13.6 billion) have been estimated till year 2050 **. Of the total, an amount of RM 15.4 billion would be spend between 2000 - 2005. The business papers indicate that the total budget for the 50 - year period could potentially increase to 77 million ***. The privatization plan involves the handing over of the management of water - supply - related resources to the private sector to be organizes around the dictates of the market, and premised on profitability. Further more, it entails the private management of various components in the water supply chain including production, operations, maintenance and rehabilitation of treatment plant, distribution and billing. Here, the water conservation is assumed to be the responsibilities of the state. The variability of privatization depends on the ability of private players to make profits. In fact , by organizing the management , distribution and access to water around the rules of the market , decisions relating to the water sector will be governed by the need to generate profits, increase the stock values of privatized companies, and other investment considerations. The privatization exercise will be organized as a concession contract, a build - operate - transfer (BOT) or build -own - operate - transfer (BOOT) contract, with a dominant role for the private sector. It appears that concession contracts and private - public partnerships**** are a preferred arrangement in the water sector in most countries. The BOT and BOOT contracts shift the responsibility for financing , building and operating water facilities, such as treatment plants, from the government to the private sector. Privatisation is being pushed as the only solution without considering other alternatives. Specifically, privatization is perceived as the most effective, efficient and sustainable option in managing the water supply system at a time when most country is endowed with enormous amounts of rainfall. Privatisation in the water sector was first initiated in 1987, and is presently in various stages of development in the country. The privatisation of water supply is taking place at a time when the cost of other essential services - necessary for the survival , sustenance and reproduction of the individual and the family , such as healthcare, infant food, rental, food, petrol and cost of education - are escalating , and marginalizing the poor and vulnerable groups. The increase in water tariff and potential disconnections as a result of water privatization will surely push the poor families to the edge. In fact, as water becomes more costly and less accessible, the poor families will be force to make trade - offs between water, food, education and healthcare. Futhermore, there is a concern that the principles of social equity, environmental preservation and access to water for all at affordable prices will be sacrificed in the process. People fear that the privatization of the water supply network will lead to the handing over of vital resources of the nation to vested interests, a phenomenon that has plagued the nation and depleted its resources in the last two a half decades. A complete absence of civil society participation in the decision - making processes in the water management of the country goes against the will and commitment of the Barisan Nasional (BN) government and the Prime Minister. During the recent general election , the Prime Minister posited an "agenda for reform" for the country. It encourages the rakyat ( people) to be pro active: "work with me and not for me". Thus , voters have a right to demand a transparent and accountable decision - making process, where the voter and civil society views are central to the decision - making in relation to the management of water resources in the county. The BN government must honors its pledge during the 2004 elections. continue Background
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